Defending Debt Collection Lawsuits

Have credit card companies, debt collection agencies, debt collectors, or collection attorneys served you with a Summons and Complaint or an Arbitration Notice for a credit card, medical, cell phone, or other consumer debt? If they have, please do not panic. You do have options. There may actually be defenses to these types of lawsuits and thus you may not have to pay your debt or at least the full amount.

Creditors have the burden of proof. That means that their records must justify the award or debt they are attempting to collect. Proper records that creditors should keep on file and have in order to bring suit against consumers include signed credit card disclosure statements, monthly billing statements, and documents bearing the debtors signature. If their records fail to include these items and they cannot prove their allegations, you may successfully defend against their lawsuits. In most cases, creditor lawsuits are seldom challenged and consumers are saddled with default judgments, which can last for many years depending upon the state in which there brought. Default Judgments mean that you have to pay the full amount of the award the creditor seeks, in addition to possible attorney’s fees and court costs. If you have a judgment that has been brought against you, your credit rating may be affected greatly. A poor credit rating will cause you to pay higher interest rates on your loans and higher insurance premiums on your homes and vehicles. In addition to higher interest rates, consumers with lower credit scores may have difficulty being hired or switching jobs because employers often read credit reports before hiring new employees. Therefore, it is imperative that you act quickly and respond to avoid default judgments before it is too late.

In some instances, an attorney may be able to represent you regarding a credit card debt that has gone or will soon go to a collection agency.  Said attorney may be able to negotiate your debt or lower it for you to an amount you may be able to afford.  Some consumers have incomes and assets that are exempt from creditors such as Social Security, pensions, homesteads, and motor vehicles up to certain limits.  In addition many debt collectors are governed by the Fair Debt Collection Practices Act (FDCPA).  The attorneys located on the FDCPA Directory page may be able to help you.